Which of the following correctly identifies all six fiduciary duties a California real estate agent owes to their principal, as represented by the acronym OLD CAR?
Correct Answer
B) Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable care
OLD CAR stands for Obedience (follow all lawful client instructions), Loyalty (place the client's interests above all others, including the agent's own), Disclosure (reveal all material facts that could affect the client's decisions), Confidentiality (protect information the client would not want disclosed to adverse parties), Accountability (properly receive, handle, and account for all funds and documents), and Reasonable care (apply the skill and competence expected of a licensed professional). These six duties derive from common law agency principles and are reinforced through California Civil Code §2079.16 and B&P Code §10176.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Laws Of Agency Fiduciary Duties Question
Background Knowledge for Laws Of Agency Fiduciary Duties
Real World Application in Laws Of Agency Fiduciary Duties
Common Mistakes to Avoid on Laws Of Agency Fiduciary Duties Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
- → Under California Business and Professions Code §10140.6, what must a licensee disclose on solicitation materials intended to be the first point of contact with consumers, such as a business card or an open house sign?
- → A California buyer's agent fails to note a material defect during the visual inspection required by Civil Code §2079. The buyer discovers the defect eight months after close of escrow and wants to sue the agent for breach of that inspection duty. What limitations period applies?
- → Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
- → A listing broker sells an office building to a syndicate of which the broker is a member without informing the seller of this interest. Before closing, the seller discovers the broker’s interest and refuses to sell. What would happen in a civil suit to collect a commission?
- → A California real estate salesperson leaves one brokerage and is retained by another. Who reports the change to the Department of Real Estate, and by when?
- → After a seller accepts an offer, the seller's agent receives a second written offer at a higher price before the sale closes. California licensing rules require the agent to present that offer to the seller. Which fiduciary duty does this requirement carry out?
- → The creation of a valid agency relationship between a principal and an agent requires:
- → Without being licensed as an escrow officer, a broker may not handle escrow activities when they:
- → Seller Sally lists her property with Agent Fred and receives an offer. Agent Fred convinces Seller Sally to accept the offer by verbally promising her he will find her an ideal replacement home before the close of escrow. Agent Fred is unable to find an acceptable replacement home for Seller Sally before the close of escrow. Which of the following is most correct?
- → All of the following statements are true concerning an in-house sale, except:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Previous Question
A California seller signs an exclusive agency listing with Broker X. The seller personally finds a buyer and sells the property without any assistance from Broker X. Under this type of listing, does the seller owe Broker X a commission?
Next Question
A California listing agent conducts a visual inspection of a property and notices water stains on the ceiling but does not mention them in the TDS or to any prospective buyers. A buyer purchases the property and later discovers extensive water damage. Under California Civil Code §2079, what liability does the agent face?